Finance · South Africa
Iran Conflict Causes Gas Shortages, Coal Use Rises in Asia
Moneyweb · 2026/04/03
Summary
The ongoing conflict in Iran has caused a big reduction in the supply of natural gas, which is making it harder and more expensive for many countries to get this important energy source. Because of these shortages and rising prices for liquefied natural gas (LNG), many countries, especially in Asia, are turning back to older coal power plants to meet their energy needs. This shift is happening because coal is more readily available and cheaper compared to the limited gas supplies. However, relying on coal can cause more pollution and environmental problems. This change highlights the challenges countries face in balancing energy supply, costs, and environmental concerns during times of crisis.
OnABudget takeaway: Higher gas prices and supply problems mean electricity costs could rise, pushing households and small businesses to look for affordable energy options or face higher bills. Investors might also see shifts in energy markets as coal use increases.